November 1, 2023 Press Release WASHINGTON, DC — Today, the Congressional Budget Office (CBO) reported that Republicans' partisan proposal to cut Internal Revenue Service (IRS) funding to offset the costs of supplemental aid to Israel would actually increase the deficit by $12.5 billion dollars over the next decade. The CBO's analysis was in response to a letter sent yesterday by Congressman Steny H. Hoyer (MD-05), Ranking Member of the House Appropriations Subcommittee on Financial Services and General Government, and Congressman Brad Schneider (IL-10), Member of the House Ways and Means and Foreign Affairs Committees, raising concerns about the cost of House Republicans' partisan legislation. The CBO's nonpartisan analysis found that Republicans' $14.3 billion rescission in funding made available to the IRS to enforce the law and collect taxes legally owed by the wealthy would lead to a $26.8 billion loss in revenue and add $12.5 billion to the deficit over the next ten years. Republicans have made these alleged "offsets" a condition of American aid to Israel amid its war with the Hamas terrorist organization. “The CBO confirmed what Congressman Schneider and I laid out in our letter requesting this analysis yesterday: Republicans' 'offsets' for our aid to Israel are the exact opposite.” Congressman Hoyer said. “These cuts to the IRS would cost hardworking Americans an additional $12.5 billion by allowing the wealthy to continue cheating on the taxes they owe by law. It is beyond shameful that Republicans would capitalize on this traumatic moment for Israelis to push for such a blatantly partisan – and blatantly dishonest – measure. The only thing Republicans ought to be cutting is this nonsense. We must secure this essential aid for Israel without condition and without delay.” “Republicans aren’t trying to ‘offset’ aid to Israel, they are dead set on making support for Israel a wedge issue,” said Congressman Schneider. “The CBO analysis gives further proof. Speaker Johnson could save the country $12.5 billion with a clean emergency supplemental.” To read the full letter, click here or see below: Dear Congressman Hoyer and Congressman Schneider: You have asked the Congressional Budget Office to provide information on the estimated budgetary effects of rescinding $14.3 billion in mandatory funding for the activities of the Internal Revenue Service and other agencies as originally provided in Public Law 117-169 (an act to provide for reconciliation pursuant to title II of S. Con. Res. 14). The attachment shows CBO’s year-by-year estimate of the budgetary effects of such a rescission, which was included in section 306 of the Israel Security Supplemental Appropriations Act, 2024, as posted on the website of the House Committee on Rules on October 30, 2023. CBO estimates that enacting section 306 would increase deficits over the 2024-2033 period by $12.498 billion. That increase results from a decrease in outlays of $14.288 billion and a decrease in revenues of $26.786 billion. I hope that this information is useful to you. If you have any additional questions, please contact me. Sincerely, Phillip L. Swagel Director